Paytm and PhonePe are likely to launch the Unified Payments Interface (UPI) Lite on their mobile applications soon.
UPI LITE is an on-device wallet feature that allows users to make real time small value payments of upto Rs 200 without using a UPI PIN. Through this, users can make payments even in offline mode. However, while adding funds to the balance, an internet connection will be required. This will allow transactions with a maximum value of Rs. 200 each. What’s best for users is that they will not require a repetition of KYC if they already have an existing UPI ID.
On Paytm, the feature is expected to be enabled within a month.
According to an NPCI circular issued in last March, about 75% of the total volume of retail transactions, including cash, in India are below Rs 100 in transaction value. Additionally, 50% of the total UPI transactions are also of the value Rs 200 or less.
To enable UPI lite, firstly, the user has to open his/her UPI app. Then on the home screen of the app, users will get the option to enable UPI LITE. Click on that option. The third step is to read and accept the terms and conditions. Next, enter the amount to add in UPI LITE and select the bank account. Finally, enter the UPI PIN and UPI LITE will be enabled successfully.
To make transactions open the app, choose to pay, enter the amount and the money will be sent successfully without UPI PIN.
With the kind of load that the payment mechanism is handling, only a few weeks ago, UPI faced technical glitches and rejection rates were seen to be higher than normal. With UPI Lite, most of the low-value transactions can be taken offline, so that the payment gateway gets decluttered and more efficient.
The UPI payments facility is empowering India and Indians with faster and more efficient monetary transactions. Now, with the introduction of this update, it is slated to go a notch up, especially for small-value transactions. Both users and banks will benefit from the commencement of this feature on the UPI platform.
